Assuming, you have been asked to prepare a final account for Transatlantic, an entrepreneur or a sole trader for the year ended 31 December 2019. Jesse U., has forwarded to you all books of prime entry and ledgers and in addition has given you the following information: i) Jesse U., had taken $3,000 out of the business bank account to take his wife on vacation. ii) Up to last year the machinery and vehicle used in the business had been depreciated using the reducing balance method. Jesse U., thinks that they should now be depreciated using the straight-line method. iii) Jesse U., is confident that given his order book that the business will continue to operate in its present form for many years. iv) Jesse U., had purchased ten staplers, four flip charts and four packets of whiteboard markers which will be used in the business for the next couple of years. v) Jesse U., informs you that he has just found an unopened electricity bill for $800 which was for the quarter October to December 2019.

REQUIRED: Identify and explain the main accounting concepts being highlighted, then indicate how each should be treated in the final accounts.